Csx Corporation · NASDAQ:CSX
Csx — BB&T Transportation Conference 2013
9 slides from Csx's conference presentation, Feb 14, 2013
Slide 1: Forward-Looking Statements
Forward-Looking Statements This information and other statements by the company may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, margins, volumes, rates, cost
Slide 2: Presentation overview
Presentation overview . . . Produced 2012 earnings growth and margin expansion — Overcame substantial utility coal headwinds to sustain long-term performance Business mix has changed significantly since 2006 — Coal now 20% of total volume while intermodal has grown to 38% Coal headwinds expect
Slide 3: Performance sustains CSX's strong track record
Performance sustains CSX’s strong track record. . . Operating Income Operating Margin Earnings Per Share Dollars in Billions $3.46 29.4% $1.79 $2.14 22.3% $0.93 2006 2012 2006 2012 2006 2012 8% CAGR 710 bps Improvement 12% CAGR 5 . . . despite significant volume decline and mix shift Volume Mercha
Slide 4: Diverse business will drive long-term growth
Diverse business will drive long-term growth 2012 Volume by Market 6.4 Million Units International Intermodal Chemicals 7% 18% Automotive 7% Metals 4% Agriculture 6% Domestic Intermodal Phosphates 5% 20% Food & Consumer 2% Forest Products 5% Emerging Markets 6% Domestic Coal Export Coal 14% 6% 7 Gas
Slide 5: Export coal diversified, but challenged near-term
Export coal diversified, but challenged near-term Export Coal Export Tons in Millions Queensland Price Per Ton (Met) $350 Europe Asia South American and Other $250 2013 40 ~ $150 $50 2012 31 11 7 48 Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 2011 25 9 6 40 API2 Price Per Ton (Steam) $150 $130 2010 17 7
Slide 6: U.S. energy renaissance drives industrial growth
U.S. energy renaissance drives industrial growth Industrial Sector Drilling expected to increase — Supports Frac sand and metal pipe Growing liquids from drilling — LPG volumes increasing Eastern refineries increasing usage of domestic crude oil Drilling Activity — Crude-by-rail volume growing
Slide 7: Housing market drives nearly 6% of CSX's business
Housing market drives nearly 6% of CSX’s business Construction Sector U.S. Housing Housing starts remain well Starts in Thousands below historical averages Decade Average Historical Average — 60% growth from 2012 required to reach 50-year average 1,768 1,492 1,536 1,406 1,371 Housing starts driv
Slide 8: Investments enhance intermodal network capabilities
Investments enhance intermodal network capabilities Intermodal Montreal Driving efficiencies through double-stack clearances Worcester — Double-stack volume is 80% Pittsburgh today; over 90% by 2015 Baltimore Columbus New and expanded terminals Charlotte address market opportunity — Expanded Wor
Slide 9: Wrap-up
Wrap-up . . . Earnings growth and margin expansion in 2012 — Merchandise and intermodal growth, plus productivity overcame coal headwinds Coal markets will remain challenged in 2013 — Low gas prices, high inventories and lower global demand are key drivers Merchandise/intermodal growth expecte